Introduction

For small businesses seeking consistent growth, every dollar counts. A business's success or failure boils down to its ability to find cost-saving techniques, without compromising on the quality of their product or service. The ability to reduce fixed and variable costs goes a long way in meeting this objective. This is where inventory management plays a part.

Inventory management is the process of monitoring, tracking, and maintaining a company's
Supply Chain in order to function efficiently and effectively. The basic steps of
Inventory Management include purchasing inventory, storing inventory, and profiting from inventory.
In today's cut-throat, hyper competitive world, inventory helps businesses organize themselves better.

However, businesses often lose money because of poor Inventory Management. Even with the best marketing strategies at hand, quality controlled raw materials, good quality finished goods, and affordable rates, a business will be unable to make enough profit if its basic inventory control system is flawed. Businesses should therefore take the right steps to ensure that their inventory management is efficient. This article lists the five most important of them.